Important note

This AI stock analysis for Google is not up to date. Creating and accessing our AI stock Analysis (powered by our data and Chat GPT) is only available for our premium users. Sign up to get access today!

Google - AI Stock Analysis

Analysis generated February 23, 2025

Google LLC, a subsidiary of Alphabet Inc., is a global technology leader specializing in Internet-related services and products. The company was founded by Larry Page and Sergey Brin while they were Ph.D. students at Stanford University. Google's core offerings include search, advertising, cloud computing, and software. It is renowned for its dominant position in the search engine market, which is complemented by its diverse product lineup, including YouTube, Google Maps, and the Android operating system. Google continues to expand its footprint through innovation and strategic acquisitions.

Fundamental Analysis

For the last quarter, Google's revenue stands at $95.4 billion, marking a 7.98% increase compared to the previous quarter and a 12.14% increase year-over-year. This steady growth demonstrates resilience and the ability to scale revenue, crucial factors for long-term investors.

The net income for the last quarter was $26.5 billion, an indication of robust profitability. This figure shows a quarter-over-quarter growth of 0.89% and a substantial year-over-year growth of 28.27%, underscoring Google's impressive earnings capacity.

However, the EBITDA for the last quarter was $31 billion, reflecting a 13.35% decrease from the previous quarter. While this might be a cause for concern, the year-over-year increase of 18.92% suggests that the EBITDA is still strong on an annual basis.

The current P/E ratio is 22.32, a moderate value indicating that Google's stock is neither overvalued nor undervalued. This ratio is essential for assessing how much investors are willing to pay per dollar of earning, and a moderate P/E ratio often suggests balanced investor sentiment.

It is worth noting that insider selling has been reported recently. While this can be seen as a bearish signal, it is also a common practice for various reasons unrelated to the company's performance.

Technical Analysis

Today's stock price is $179.66, representing a 9.25% decrease compared to a month ago, which might indicate short-term concerns. However, the stock shows a 25.25% increase compared to a year ago, reflecting a positive long-term trend.

The trend is currently bearish. The current SMA10 is 183.35, slightly lower than the previous SMA10 of 184.00, pointing to a potential downward trend in price movement. The RSI (Relative Strength Index) is 31.7, suggesting a neutral condition in the market sentiment.

Alternative Data Analysis

Google's recruitment efforts are noteworthy. The company has 4,444 open positions, a 24% increase in the last couple of months. This hiring spurt is a positive indicator of growth and expansion.

Regarding customer acquisition, Google estimates 112 billion visitors to their webpage, with stable traffic over recent months. The number of app downloads is also rising, with an estimated 210,000 users downloading their mobile apps daily, up by 23% recently. This uptick suggests growing user engagement and customer base.

Customer engagement on social platforms shows stability, with 15 million followers on Instagram and 33 million followers on Twitter, without significant fluctuation in the past months.

AltIndex's AI score for Google is 64, indicating a buy signal based on comprehensive analysis including fundamental, technical, and alternative data.

Conclusion

In conclusion, Google's stock exhibits a healthy mix of growth and stability. The revenue and net income growth rates are promising, and while the EBITDA decrease raises some concerns, the overall profitability remains strong. Despite the recent bear trend in stock price and mixed short-term technical indicators, the long-term outlook is positive, marked by the company's expansion trajectory and increasing customer engagement.

Based on a balanced review of fundamental, technical, and alternative data, the recommendation is to consider buying Google's stock. The indicators suggest that Google is well-positioned for continued growth and offers potential upside for investors.

Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.